Can I buy my mums home?

BitterAndTwisted

There's more to this than meets the eye. I can't think of a single woman in the prime of her life who would divest herself of a valuable asset like that for no benefit to herself unless she was mentally ill, coerced or had plenty of other assets. If she did have plenty of other assets then why gift 125 grand in property and risk being kicked out by an over-optimistic, totally inexperienced "property-developing magnate"?

It's not adding up

DVardysShadow

papa_face wrote: »

I can put down £10k deposit if I really have to, as I said the mortgage won't be an issue.
My mum is 49.
I am going to go into property development in a few years time, I don't need to worry about sharing my home with my mum lol.
Its just to give me a step up onto the property ladder at a time when it seems most sensible for our personal circumstances

I'm really wanting to know if I'd have to pay some sort of tax as a result of buying the home, such as capital gains etc?

It is a barmy, totally barmy way of 'getting on to the property ladder" and into property development.

You can only move on to the next place by selling up and taking Mum with you or by kicking her out. Or by starting with a new place from scratch. in which case some equity in Mum's place might help you to a small extent, but much less than you will be hindered by the mortgage you have

papa_face wrote: »

Thanks for that. I wouldn't be looking to sell my home or release the equity in it at all to fund any properly developing ventures in the future.

We're doing it to cut costs on my mums behalf. I can afford to pay the mortgage more than she can, and she is very happy to hand things over to me.

So actually this move is irrelevant to your plans to become a property developer.

I suggest you produce a business plan. It might help. Seriously.

poppy_f1

there was talk about 2 years ago of me buying my mums house to free up the equity with her looking to downsize at some point in the future however once we realised what could go wrong we decided against it

poppysarah

If you want to play at property development get some lego and build some houses rather than play with your mums home.

googler

DVardysShadow wrote: »

It is a barmy, totally barmy way of 'getting on to the property ladder" and into property development.
(snip)
I suggest you produce a business plan. It might help. Seriously.

If you're planning on proeprty development as a business / source of income, I also suggest a business plan, especially in the current climate.

What skills have you got that would place you well for property developing? What do you do for a living at the moment?

456789

googler wrote: »

What skills have you got that would place you well for property developing?

it doesn't matter - anyone can do BTL! :rotfl:

FATBALLZ

456789 wrote: »

it doesn't matter - anyone can do BTL! :rotfl:

Exactly, just keep watching repeats of 'Property Ladder' and you've got it made.

superfran_uk

Only if she wants to sell to you; and if she's at all sane then once her solicitor informs her of the risks she won't.

RobertoMoir

papa_face wrote: »

I am going to go into property development in a few years time, I don't need to worry about sharing my home with my mum lol.

"lol" indeed. At least, that's what I thought too, on reading your posts. Sorry, but you're deluding yourself. I don't know anyone over the age of 30 whose life went exactly as they thought it would at 21. How secure is that "secure job" for example, no job is bulletproof and no-one is indispensable.

superfran_uk

RobertoMoir wrote: »

"lol" indeed. At least, that's what I thought too, on reading your posts. Sorry, but you're deluding yourself. I don't know anyone over the age of 30 whose life went exactly as they thought it would at 21. How secure is that "secure job" for example, no job is bulletproof and no-one is indispensable.

Seconded. In fact younger people (unfortunately) are the most at risk job-wise. Easier and cheaper to get rid of. It sucks but it's the way it is at the moment.

Also 'I am going into property development' is a very bold statement, it's not like 'I'm going to become a teacher', it's more like 'I will win the lottery in a few years'. You're relying on a lot of external factors (i.e. property prices rising, mortgage rates going down) to make it a success - Otherwise you'll just be someone who's wasted a lot of money on depreciating assets, like many last year. You're only a property developer if you make money at it!

Of course, assuming that you are a plumber, electrician, plasterer, painter, builder, kitchen fitter, interior designer and all the other things required to develop properties then you should be ok for a job if it doesn't work out.